Both Mr Huhne and Justine Greening, Economic Secretary to the Treasury, argued to fellow MPs that the impact on the industry would be "marginal" given today's current high oil prices averaging well over $100 per barrel this year.

The committee had heard earlier from Oil and Gas UK that the tax change has caused an unprecedented loss of confidence in North Sea investment, with its index dropping from a positive 76 points to a negative 46 points on a scale of one to 100.